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Press release from PR Newswire

Quanta Services Selected by American Electric Power to Rebuild Over 900 Miles of Transmission Infrastructure

Tuesday, November 15, 2011

Quanta Services Selected by American Electric Power to Rebuild Over 900 Miles of Transmission Infrastructure06:07 EST Tuesday, November 15, 2011HOUSTON, Nov. 15, 2011 /PRNewswire/ -- Quanta Services, Inc. (NYSE: PWR) today announced that it has been selected by American Electric Power (NYSE: AEP) to provide transmission infrastructure services for two AEP Transmission Company subsidiaries. Under agreements with AEP Ohio Transmission Company and AEP Oklahoma Transmission Company, Quanta will rebuild or replace existing transmission infrastructure including, but not limited to, structures, conductor and shield wire. The infrastructure services provided by Quanta will be performed on over 900 miles of existing transmission lines for an estimated aggregate value of more than $300 million. Work has begun and should be completed in 2014. The final terms and conditions of the agreements are expected to be finalized shortly.(Logo:"AEP's initiatives to improve their transmission infrastructure are part of a nationwide trend by utilities to improve the U.S. electric grid, and Quanta is proud to have been selected to play an important role in this effort," said Jim O'Neil, president and chief executive officer of Quanta Services. "These projects build on the long-term relationship that Quanta has with AEP, and we appreciate their confidence in our ability to complete these important projects on time and on budget."About American Electric PowerAmerican Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation's largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation's largest electricity transmission system, a nearly 39,000-mile network that includes more 765-kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP's transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas. AEP's utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP's headquarters are in Columbus, Ohio.About Quanta ServicesQuanta Services is a leading specialized contracting services company, delivering infrastructure solutions for the electric power, natural gas and pipeline and telecommunication industries. The company's comprehensive services include designing, installing, repairing and maintaining network infrastructure nationwide. Additionally, Quanta licenses point-to-point fiber optic telecommunications infrastructure in select markets and offers related design, procurement, construction and maintenance services. With operations throughout North America and in select international markets, Quanta has the manpower, resources and expertise to complete projects that are local, regional, national or international in scope.  Forward-Looking Statements This press release (and any oral statements regarding the subject matter of this press release) contains forward-looking statements intended to qualify for the "safe harbor" from liability established by the Private Securities Litigation Reform Act of 1995.  Forward-looking statements include, but are not limited to: any expected value of the intended agreements with American Electric Power; the scope, services, term and results of the projects awarded; the anticipated time frame for commencement and completion of the projects; and the intentions of the parties to enter into definitive agreements regarding the projects and the final terms and conditions thereof; as well as statements reflecting expectations, intentions, assumptions or beliefs about future events and other statements that do not relate strictly to historical or current facts.  Although Quanta's management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.  These statements can be affected by inaccurate assumptions and by a variety of risks and uncertainties that are difficult to predict or beyond our control, including, among others, successful performance and completion of the intended agreements and the projects awarded thereunder; failure to realize the anticipated value of the intended agreements; the parties' ability to negotiate and finalize the definitive agreements for the projects; the potential for incurrence of damages or other claims for schedule delays or performance shortfalls, including as a result of warranty claims following completion; the failure of Quanta's subcontractors to perform their obligations, including warranty obligations, under their subcontracts; delays, reductions in scope or cancellations of the intended agreements or the projects awarded thereunder, including as a result of weather, regulatory or environmental issues; adverse changes in economic conditions and trends in relevant markets; future growth in the electric utility industries; pricing methodologies for the work to be performed on the projects and the potential to incur losses with respect to these intended agreements; the inability of customers to pay for services; cancellation and termination provisions that may be present in the intended agreements; and other factors affecting the business of the Quanta generally, including risks detailed in Quanta's Annual Report on Form 10-K for the year ended December 31, 2010, Quanta's Quarterly Reports on Form 10-Q for each quarter ended in fiscal year 2011 and any other documents of Quanta filed with the Securities and Exchange Commission (SEC).  Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. Quanta does not undertake and expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Quanta further expressly disclaims any written or oral statements made regarding the subject matter of this press release by any third party.  For a discussion of these risks, uncertainties and assumptions, investors are urged to refer to Quanta's documents filed with the SEC that are available through the company's web site at or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at Kip Rupp, CFAStephanie Schneider713-341-7260713-341-2439SOURCE Quanta Services